Housing associations: a landlord's guide

Being a small landlord comes with decisions about how to rent out your property. Beyond the typical private tenancy, you might consider leasing to a housing association. This means leasing your property to a local authority or a housing association group, who then sub-let it to tenants.

A number of local authorities have signed up to the Housing Association Leasing Scheme (HALS) which allows landlords to lease their properties via a housing association.

This guide explains these arrangements in clear terms – highlighting benefits, risks, and what steps you might want to take – so you can make an informed choice about renting to a housing association instead of to a standard tenant.

Can I rent my home to a Housing Association as a small landlord?

Yes – if you live in an area with a HALS in place. Housing Associations in places like Brent, Southwark or Dudley all partner with private landlords to provide social housing for individuals and families in need. This can be a way for you to provide housing while also receiving a guaranteed income and reduced management responsibilities. 

You will need to check with your local council first before renting out your property. You can get in touch with your local authority and they can direct you towards a Housing Association in your area, if there is one.

Should I rent my home to a Housing Association?

Renting to a housing association means leasing your property to a non-profit or local council-backed organisation that will house tenants, often people in need of affordable or social housing. The housing association becomes your tenant and manages the occupants, usually on a long-term lease.

It comes with a few clear benefits:

• Guaranteed Rent and Fewer Voids: Housing associations often pay a fixed rent, backed by government funding, even if the property is temporarily empty. This gives you a stable income with minimal vacancy risk​. And given the high demand in the UK for social housing, you should be confident that you’ll not have any issues maintaining a lease when your property is available through the housing association.
  
  The government provides incentives to landlords who make their properties available for social housing, including property improvements, tax benefits, and access to funding programs for homes.

• Hands-Off Management: Housing associations typically handle day-to-day management, tenant vetting, and property maintenance for minor issues​​. This greatly reduces the workload and stress on the landlord​.
  
  Housing associations generally take an active role in ensuring properties are well-maintained and adhere to strict quality standards, so you don’t need to worry as much about maintenance issue reporting or other such issues.

• Social Impact and Incentives: By leasing to an HA, you contribute to affordable housing. There can be financial perks too (e.g. grants for improvements or tax incentives for social housing participation)​​, but if you’re looking to do good as a landlord while making some extra money, lease to a housing association.

In exchange for that guaranteed rent and hands-off management though, you will have somewhat less control over your property:

• Lower month-on-month rent: In exchange for guaranteed ease, the rent offered might be slightly below market rates, often aligned with local housing allowance levels. You trade some profit for peace of mind and reliability.
  
  You’ll likely make slightly less month-on-month, usually either market average to ±10% below market rate, but year-on-year, because you have a guaranteed monthly income and no void periods, it will likely not be a significant sum.

• Less Control: You won’t choose the tenants. The housing association places tenants and enforces rules. You also must meet their property standards and may have less direct say in how the property is used​.

Unfortunately, housing association properties can be less well looked after than other privately rented places, too. If you are especially concerned about property care as a small landlord, renting to a home association may not be right for you.

• Contract Length and Exit: Many arrangements are long-term (3–5+ year leases), ensuring consistent cash flow without the regular tenant turnover, but locking you into a long term commitment. If you need to regain possession (for sale or personal use), it may be difficult until the contract ends, unless break clauses are included.

• Insurance and Mortgage Approval: Due to the higher risks associated with renting through a housing association, do check that your mortgage and insurance providers do not have any clauses that prevents your property being used in such a way. If you do ever need to claim, having an incorrect policy can void your insurance or mortgage, so be warned. 

How to go about renting to a housing association

Firstly, confirm if you live in an area with a housing association you can rent to. Most local authorities advertise their housing associations publicly. So check online first, to see if they have recently said if there is one that is suitable for you. If you cannot see this information on their website, get in touch with the council directly. They will get back to you, usually within a few days.

If they have a housing association you can contact, get in touch. They will quickly give you the top line information. This includes length of contacts, expected time until the first tenant, and so on. You will often then receive by email or post with further details.

Each association has its own rules and offerings, so read any documents carefully and do not assume that they will be the same across authorities. The rules in Haringey are very different from the rules in Brent, for example, despite both being in North London.

Looking for more help with rental property management?

At August, we aim to be your all-in-one app for small landlords. Our app does everything from managing your tenants, helping you receive notifications when rent’s been paid, chasing late payments, making maintenance reports, and more. 
If you are struggling to manage your property, renting to a Housing Association or using an agency to manage your property may be the best way to go. But if you just need a little extra help to manage your property, and want to keep control of the properties you are renting out, try August for free. And download today and get the first month of August premium for free.

Disclaimer: This article is a guide and not intended to be relied upon as legal or professional advice, or as a substitute for it. August does not accept any liability for any errors, omissions or misstatements contained in this article. Always speak to a suitably qualified professional if you require specific advice or information.